High Yield Report articles from May 2003

High Yield Report archives from May 2003

Investors Frustrated by Companies that Won't Talk.
May 5, 2003... The first-quarter reporting season is winding down, and earnings have for the most part beat Wall Street expectations, but high yield investors are still not happy. Many say they are having trouble with companies that - well, just won't talk to...

Despite Challenges, Duke Launches CDO.(Duke Street Capital Debt Management, collateralized debt obligation)
May 5, 2003... Duke Street Capital Debt Management's closing of Duchess II, the second-largest leveraged loan collateralized debt obligation (CDO) to close in Europe this year, proved that despite increasingly difficult market conditions, it is still possible...

Single-Tranche CDOs Gain Popularity.(collateralized debt obligations)
May 5, 2003... The dozen or so financial houses offering access to single-tranche CDOs, or STCDOs, as they have been dubbed by the market, are reportedly receiving lots of inquiries on this sophisticated product that is rapidly gaining popularity. ...

Owens-Brockway Triumphs with Jumbo New Issue.(US, European briefs)
May 5, 2003... US The US primary market ramped up last week, with more than $2.09 billion in new bonds pricing by press time and four more still waiting to price. Tightest-Ever Pricing for Owens-Brockway Owens-Brockway was first up with a...

Market Rises as Spectre of Corporate Fraud Fades.(US secondary market)
May 5, 2003... US It was the same story in the US secondary market last week: Everyone was buying everything and anything! Very low default rates, and money market accounts yielding barely 1% have pushed investors to look elsewhere for yield. As...

Many Loans Trade Above Par in Secondary - But is the Rally Fundamental or is it Technical in Nature?(US secondary market)
May 5, 2003... The US secondary market for syndicated loans is on a roll. Because bids have been so strong over the past few weeks, prices on most institutional tranches - including those that don't feature call protection - have been rising, and many...

High Yield Market Rally Continues, But is it Justified?(Interview)
May 12, 2003... Over the past 10 weeks, investors have crammed more than $1 billion a week into the hands of high yield fund managers. As a result, demand for new paper has been soaring, reaching an all-time high in the first quarter of 2003, according to...

DTCC Service to Stabilize CDS Market.(Depository Trust and Clearing Corp.)
May 12, 2003... Credit default swaps are not the easiest instruments to wrap one's mind around, and potential market players must accept risks and overhead costs that may sway them toward cautiously waiting on the sideline until the market evolves further. ...

Distressed Debt Does it For Dalton.(Dalton Investments LLC)(Interview)
May 12, 2003... Some investors like to follow the herd and pile into whatever's the hottest asset class of the moment. And there are others, like Steven Persky, managing director at Los Angeles-based Dalton Investments LLC, who prefer to seek out investment...

Despite Better Market Tone, CMA-CGM Fails to Garner Interest.(US, European markets)
May 12, 2003... US The US primary market was hot again last week, with a whopping 13 deals scheduled to price and six pricing by press time. Flextronics Prices a Refi Flextronics priced a Ba2/BB- rated, $400 million offering of 10-year non-call...

Softer Trading in Both Markets, Although Secondary Still Rocks.(US, European markets)
May 12, 2003... US The US secondary market opened last Thursday with active trading but a heavy tone for the second day in a row, as levels opened softer across the board, traders said. Initial signs of weakness started Monday but selling pressure...

European Loans Market is Quieter This Year.
May 12, 2003... Two thousand and two was a solid year for the European leveraged loan market. New issuance topped out at a healthy E87.4 billion, according to data from Loan Pricing Corp., up from E76.5 in 2001, with most of the deals (E57.4 billion worth)...

At a Glance: Steven Persky, Managing Director at Los Angeles-Based Dalton Investments LLC.(Brief Article)
May 12, 2003... Given Steven Persky's background, it is not surprising that he wound up launching an investment firm that has a heavy emphasis on Japanese investments. Growing up in New York City, Persky attended the Dalton School, where he met his friend...

Stomach Ahold Turbulence In the Near Term & All Will Be Well.
May 19, 2003... It was a risky move to make, but plucky investors who made the decision to go long Ahold bonds following the revelation of an accountancy scandal in February are now patting themselves on the back. Far from blowing up Enron-style (despite...

Packaged Ice LBO Tempts, But Beware.(Bear Stears Merchant Banking, Trimaran Capital Partners leveraged buyout of Packaged Ice Inc.)
May 19, 2003... For existing security holders, the proposed $450 million leveraged buyout of Packaged Ice Inc. by Bear Stearns Merchant Banking and Trimaran Capital Partners promises to be a bonanza. Only a year ago, the company's 9.75% bonds traded as low...

Energy Companies Refi Victories In Doubt.
May 19, 2003... Success in the credit markets these days is fleeting, at least for some energy companies. While some companies might be rejoicing at their ability to refinance, fresh funding may simply have delayed the inevitable for them. "If I'm in a...

US May Be Flooded with Deals, but European Issuance Year To Date Has Outpaced 2002 Total Volume.(primary market)
May 19, 2003... US A Bumper Crop Prices in the US It was a super busy week for the US primary market last week, with 19 deals expected to price and 13 pricing by press time. Interline Brands priced a Caa1/B- rated, $200 million offering of 11.5%...

Not all US Deals Trade Up After Launch, Traders Say.(US, European secondary markets)
May 19, 2003... US The US secondary market was very active last week, traders said, largely as a result of the bumper crop of new issues that priced. "It's all about new deals," traders said. Analysts at buyside firms were busy crunching numbers,...

Bondholders Attempt to Bring About Avado Restructuring.(Avado Brands)
May 19, 2003... By banding together and hiring reputable law firms to represent them, bondholders have been playing an increasingly high-profile role in today's corporate restructurings. Now some of them are trying to use their newfound influence to try to be...

Refinancing Their Way Out of Trouble, Fallen Angels Try HY.
May 26, 2003... Last week's jumbo E1 billion-equivalent refinancing for French specialist chemicals firm, Rhodia has shown that fallen angels can successfully access the high yield market and satisfy both their needs as well as those of investors. At the...

US Unwired Pulls a Qwest Stunt.(exchange offer for bondholders)
May 26, 2003... US Unwired, a Sprint affiliate, tried last week to interest bondholders in an exchange offer that will wipe out almost 80% of its debt. The exchange, though, will also strip away covenants and pledges, thereby leaving bondholders with little...

Deflation Could Widen Spreads.
May 26, 2003... Federal Reserve Chairman Alan Greenspan expressed his concern about deflation last week, but should it arrive, he will mainly have to deal with it at a policy level. Bankers, on the other hand, will have to confront the results of a...

Rhodia, Impress Occupy Europe, as US Buys Up Deal Deluge.(high yield market deals)
May 26, 2003... US Ahead of the Memorial Day weekend and unofficial beginning of summer, the US high yield market last week was expecting 24 deals to price, 17 of which had priced by press time. Salt Holdings priced a B2/as-yet unrated, $100 million...

New Issues Take Precedence Over Secondary Trading.(U.S., European secondary markets)
May 26, 2003... US The US secondary market was quiet for most of last week as investors continued to focus on the deluge of new issues flooding the primary market. Issues in the secondary market have felt the pressure of the burst of issuance and prices...

UBS Research Touts Loan Success As CDO Collateral.(collateralized debt obligations)
May 26, 2003... There's no doubt about it, leveraged loans are the collateral of choice for collateralized debt obligations (CDOs), both in the US and overseas, and according to Douglas Lucas, director of CDO strategy at UBS Warburg, serious CDO investors...

US Steel Deal Out To Apathetic Banks.(United States Steel Corp.)
May 26, 2003... The beleaguered steel industry saw one of its stars recently complete a successful bond deal and an accompanying bank transaction reportedly was wrapping up last week. But bankers weren't taking any chances, and funding will likely be harder to...